Oreana Property Group is selling the Kallo Town Centre, set to replace a piece of the former Lockerbie sheep station, in Melbourne’s north.
Due for completion next April, the 2.15 hectare Kalkallo shopping centre will contain c5,817 square metres of lettable retail area anchored to Woolworths which signed a 12 year lease for a 3600 sqm space.
There are also 18 specialty tenancies pre-committed to, amongst other groups, a gym and pharmacy.
A 2002 sqm childcare centre which will operate from a pad site.
Permitted last year, the complex was reported in planning as having an end value of $60 million.
Stockland is developing a series of housing estates on the 1121ha farm, for which it paid two sisters $300m – at the time Australia’s highest price for an individual land transaction – in 2010.
Kalkallo is about 33 kilometres from the CBD.
Kallo Town Centre
Oreana is represented by Stonebridge’s Justin Dowers and Kevin Tong who said the Kalkallo property is the first Victorian neighbourhood shopping centre to hit the market since last June (story continues below).
Mr Dowers said REITs, unlisted funds and syndicates became especially attracted to them given their strong performance throughout the COVID period.
Kallo Town Centre is the only neighbourhood shopping centre within its catchment, which is expected to experience population growth of 13.6 per cent, per annum, over the next decade, the agent added.
“[The complex] is a first mover within the catchment which is very important in establishing the retail hierarchy,” according to the executive.
“Customer habits become quite set and are difficult to change, which will hold this centre in good stead in the medium term”.
Mr Tong said given the centre should trade exceptionally from day one given the lack of competing retail.
The listing comes five days since we reported businessman John Shalit was offering the Watervale Shopping Centre, in Melbourne’s west Taylors Hill.
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